A more thorough explanation:

Definition: A named insured is a person or entity that is specifically listed as an insured on an insurance policy. This person or entity is the primary policyholder and is responsible for paying the premiums and making any changes to the policy.

For example, if John Smith purchases a car insurance policy, he would be the named insured. He is the one who is listed on the policy and is responsible for paying the premiums. If he wants to add his wife as a driver on the policy, he would need to make that change as the named insured.

Another example would be a business owner who purchases a liability insurance policy for their company. The business owner would be the named insured and would be responsible for paying the premiums and making any changes to the policy.

These examples illustrate how the named insured is the primary policyholder and has the responsibility for the insurance policy. They are the ones who are listed on the policy and have the authority to make changes to it.